Trade Aptitude

Results of Tuesday’s Best S&P Futures Turning Points: Buying 5183.00 picked the bottom of the session and ran 60+ points to the close. 

Today’s Best S&P Futures Turning Points (consider wider stops and less size in fast moving markets): 

No qualified volume levels today. 

The World Index: (+100/-100) drops from +31 to -13 in a world of mixed sentiment and plunging volatility. 

Catalysts: Crude Oil Inventories @ 10:30. 30-year Bond Auction @ 13:01.

Quick Tip: ATR Exit

Yesterday’s buy was one of the best we’ve seen in years. It ran smoothly with a few pullbacks to form price pivots for a trailing stop that was never touched. 

One open trade management tool we have is the ATR extension. The black dotted line on the chart represents the 14-period daily average true range (ATR) added to the prior day session close. You can subtract it to get the ATR extension below as well. 

Price will frequently stall and even reverse from this level. Taking a profit target this way gives up nothing on the pullback to a trailing stop. No method is foolproof so you will see price continue running on occasion. In this case, near the extension was good enough. 

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Trade Fearlessly,

Mike Siewruk

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